The property next door is obviously in a state of serious disrepair is a concern. Would this not affect the value or selling price of this listing?

Asked by Jpetrik, Waikoloa, HI Sat Jan 12, 2013

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Mark Guaglia…, Agent, Kihei, HI
Wed Mar 6, 2013
There are some very good answers posted here. But the number one thing I would recommend would be to get a valuation of your home as it currently is, including the impact of the home next door. That way you have a base to work from.

If you would like to receive a custom evaluation for your home, including comparisons to other homes that have recently sold or are on the market. This guarantees you receive the most accurate information available, just contact us or visit http://www.kwhawaii.com/sell/

Keller Williams Realty
Realty Hawaii Group
808.747.9670
http://kwHawaii.com
0 votes
Katie Minkus,…, Agent, Hanalei, HI
Sun Jan 13, 2013
It really depends on the situation. What appears to be a "serious state of disrepair" to you depending on where you live now and what sort of properties you're used to seeing might not be as bad as your assumption. I've heard people call the neighborhood where I live the "ghetto" because there are some 60 year old beach houses that are clearly in disrepair. But most people would say that Puako Beach (about six miles from Waikoloa Village) is full of luxury beach front houses that sell in the $4-7 million dollar range. It's all about perspective.

Secondly, it depends on the buyer's situation and are they getting a loan? If the buyer is getting a loan it depends on the appraiser. The appraiser might choose to take the house next door into consideration when assigning value to the listing, but they might not. The appraiser's prime directive is to use "comparable" properties that have SOLD recently to determine the market value of a property, not to use a property next door that is not on the market, but in poor condition.

In a market that is clearly turning from a buyer's market to a sellers' market, like Waikoloa Village, the next door house might not come under consideration at all. When there is limited inventory, as we're seeing now, it's likely the listing will get multiple offers and sell at a good price despite the neighbor.

My best piece of advice to you is work with a local REALTOR - and when I say local, I mean hyper-local. Don't work with someone who says they can "sell the whole island" - although our licenses allow us to sell across the whole state, the truth is someone from Hilo cannot possible "know" a local neighborhood like Waikoloa Village (they are 1.5 hours apart driving time, one way) and visa versa. Look for someone who lives and works in Waikoloa Village, they'll have the "inside scoop." And believe me, in Hawaii, you want to know the "inside scoop!" Good luck!!
0 votes
Galyn Willia…, Agent, HI,
Sat Jan 12, 2013
Aloha,

Mahalo for your question. You're correct that condition can and does affect the value. Without knowing more about the property and you interest (buying/selling/neighbor)...it's hard to provide hard information specific to your question.

The advantage of working with a local "on Island" Realtor, is that I have access to the most rent values of real estate on the Big Island.

You'll find my contact information below. Please feel free to contact me and I will help you find answers to property valuation questions not only in Waikoloa but anyplace else on our Island.

Galyn Williams REALTOR® Salesperson, SFR®
(Direct Number ) 808-756-7986
email AlohaGalyn@yahoo.com
(Office)......808-934-7600
(Fax)......... 808-934-7644
Aloha Coast Realty LLC....614 Kilauea Suite 101...Hilo Hawaii 96720
'O ke ahe lau makani, 'o ke kai malino,
'o ka lani mala 'ela'e... E malu ko ke ao a pau.

Your source of Professional Real Estate Representation on the Big Island of Hawaii
0 votes
Scott Godzyk, Agent, Manchester, NH
Sat Jan 12, 2013
It could hurt the desirability of a home which affect value. A good local agent could break down values in yor area and how much it may be affected.
0 votes
Frank Diaz, Agent, Honolulu, HI
Sat Jan 12, 2013
Yes, it will affect the price. Are you buying or selling?
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allan erps,A…, Agent, Pearl River, NY
Sat Jan 12, 2013
Cannot help but at the right price it will sell.
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Sat Jan 12, 2013
While it may or may not affect the selling price, I would think it will surely slow down the offers. It is like having a cemetery across the street, there is not much you can do about it sometimes. The only way to answer an objection that you have no control over is to adjust the price. It depends how objectionable it actually is.
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